The Elements of Elective Frugality

This plaque hangs near my front door as a reminder of two of the elements of an abundant life.

By "plenty" I don't mean lots of needless stuff or endless acquisition. For me the concept of "plenty" extends beyond just physical items and possessions.

Of course, Elective Frugality means having enough to be physically comfortable, including the addition of a few items of adornment in my surroundings. Thus, I enjoy a comfortable home that is beautifully decorated, but that I can easily maintain on my retirement pension, especially since it is now unencumbered by a mortgage.

A plentiful, grace-filled life is one in which all physical needs are met, but it also includes comfort, peace, and happiness. Not only are physical needs considered and included, but so is a serene mind, feelings of contentment, and care of the Soul. Such are the "grace-notes" of a life well lived.

Frugality is often equated with cheapness, self-denial, and poverty. No wonder frugality has a bad rap, but is this deserved...or even true?

Frugality was once an admired quality, one to be cultivated and practiced. Why is this not so today?

Frugality, and reining in procrastination, are illustrated in the old axioms we hear little of today..."a penny saved is a penny earned" - accounting for inflation, perhaps "dollar" should be substituted "penny". And, "a stitch in time saves nine".

Is it possible that those behind a "run-amok" consumer culture have maligned ideas opposed to mindless consumption-messaging, and instead substituted such ideas as, "shop 'til you drop", "born to shop", etc?

How many of us "save for a rainy day"? Or, have any savings at all?

An important element of Elective Frugality is discernment. Discernment guides how each of us applies Elective Frugality to one's own life. A six-figure income earner will apply the concept differently than someone who has a two-figure income. We each must discern the extent of our own incomes so that we aren't tossing it away to enrich corporations and CEO's to our own detriment.

Discernment allows each of us to look at our income and decide what is reasonably affordable. A two-figure earner is bound for trouble if he or she tries to buy a six-figure house, regardless of their being few bank regulations to the contrary.

The last big recession is a prime example of this. Some people who lost their homes still haven't recovered, although most corporations and CEO's have done so...and lobbied to have regulations resulting from their misconduct dropped and/or rolled back.

Those who caused the recession haven't suffered or been held to account for their actions. "Too big to fail"...does this ring any bells? The government bailed out offending corporations and banks with taxpayer money. But what of the taxpayers? We were left out in the cold to fend for ourselves.

Did the government require that taxpayer money be paid back? Yes, it did!

Do most multi-billion corporations pay taxes? No, they don't, but you and I do so with a few exceptions (I'm not one of those exceptions). Does legislation favor the extremely wealthy? It would seem so. Here's why.

While each citizen has one vote (ideologically speaking), corporations and other well-vested conglomerates are now allowed to infuse candidates' campaigns for Administrative and Legislative branches of government with untold amounts of money and perks. This influx of money doesn't stop when a candidate wins his or her seat either (the Executive branch supposedly being an exception). Perks and influential money continues to roll into the wallets and future campaigns of our Representatives and Congress men and women.This leaves our electorate owing massive favors (and favorable legislation) to their well-heeled donors rather than to those of us that elected them into office.

That being said, we, the voters, are not without strategies. And, rather than sitting around bemoaning the unfairness of an obviously rigged system, we may choose to utilize tactics and adopt mindsets that enable us to live happy, abundant, and grace-filled lives. It's entirely possible and doable, although highly frowned upon by those who want and encourage you to spend your hard-earned incomes enriching the elite and all-too-wealthy one-percent. Let's further examine the element of discernment in our adopting Elective Frugality as a life-enhancing strategy.

Discernment, applied to your situation, may dictate that instead of buying the most expensive home, car, wedding, or other item you can (or can't) afford, factor in not only what is reasonably affordable income-wise, but include into the equation those other inevitable expenses your life entails. We tend to focus on affording one or two big items, while forgetting to consider life's many other expenses.

Don't overlook utilities, taxes, insurance, maintenance and improvements. We need to consider vacations, auto expenses, clothing, utility payments, child expenses, schooling costs, medical insurance, etc. Then, having looked at all these costs, needs, and desires - including being able to save some money each payday - then, and only then, should we reasonably decide what price we can actually afford to pay for big ticket items.

A word of caution here...never buy a home, car, or clothes to impress other people. Perhaps you'll impress someone, but you, and you alone, will be paying the bill or bills. This bit of unessential ego stroke is costly and futile. People who are easily impressed by stuff, things, and labels don't usually make the best, longest-lasting, or most dependable friends.

As stated in a previous post, credit card debt is lethal to peace, happiness, and financial security and as such, is a trap set to slam shut on the unwary victim. Adopt a policy of avoiding instant gratification. Save to buy. You'll appreciate the item more and the freedom of being debt-free in your ownership of it.

Elective Frugality is also about reducing the amount of bills you have to the bare minimum. Paying off credit card debt is one of the most important things one can do to re-establish financial security. A goal worthy of striving for is...to never pay interest on anything! Ever.

For most people a mortgage and a car payment are reasonable exceptions. Yet, there are today, many who are striving to eliminate making payments on anything! It is possible to accomplish this, and in a future post I'll be sharing how some people have figured out how to live mortgage- and debt-free (and rent-free), all while only working minimal hours from home or even while on the road!

Even if some of these alternative ideas won't appeal or seem unlikely options, it's still possible to attain a payment-free lifestyle by paying off loans early by making extra payments. You'll attain peace of mind and save thousands of dollars by eliminating the need to pay interest. Making only the minimum required payments and paying interest for decades is anathema to the concept of Elective Frugality. Simply put, making only minimum payments and paying ongoing interest is both financial and indentured enslavement.

Another element of Elective Frugality is that - instead of applying frugality to all facets of your life - you get to elect which areas you'll apply it to.

Elective Frugality means that you choose to be frugal in some areas, such as paying off all loans that require interest payments, which then allows for extra money to be saved and/or spent on special items of your choosing, such as vacations, small luxuries (massages, facials, hobby equipment...something special for your home or a loved one, etc). You then have the luxury of deciding what your particular small extravagance shall be. As debts are paid off and money saved, small extravagances can become more numerous and, well, more extravagant with self-control, of course.

Balance and discernment are the keys to keeping expenditures reduced and reasonable in order to avoid debt.

Unrelenting frugality becomes sterile, burdensome, boring, and feels like deprivation. Although there are those who thrive on austerity, most of us want, even need, a few treats and perks. Thus, the "frugality of contentment" is elective and selective!

Remember, one of the most life-enhancing elements of Elective Frugality is to save money for a "rainy day". A "rainy day" is part of life's experiential nature. So always, always put aside money for illness, job loss, the inevitable recession, replacing a costly appliance, or some other unexpected loss or expense.

A rainy day fund should be consistently grown and maintained, but some of it may be used for vacations, a wedding, or some other important event or activity...but not all of it. Having money saved goes along way toward maintaining mental peace of mind and a sense of security.

Try to pay cash for things you want and need. If you use a credit card - most of us must if ordering an item online - simply don't spend more than you can pay off completely when the next statement arrives.

Adopt the stratagems of Re-use, Recycle, Re-purpose, Refurbish, and Repair...and don't be afraid to buy gently used, quality items. In the next post, I'll have some thoughts on how to do these things.

We simply must even the playing field in a system that's rigged against most of the people, most of the time, and, we must do so with joy, contentment, and style. And, the good news is that we can!

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Elective Frugality is the genteel recognition of having acquired "enough", and that authentic abundance and real wealth are not money- or thing-based, but are, instead, Soul-founded.